If I declare bankruptcy do I lose all the stock that I own?

The house I own I can no longer afford the mortgage payments and have been unable to sell it for what is owed on the mortgage. Besides the house the only other asset I have is some stock which I got from my ex in a divorce settlement but if I sell the house for less than the mortgage I will deplete all of my savings to make up the difference. If I declare bankruptcy and let the bank foreclose on the house, is there any way to prevent the bank from getting all of my savings which is in this stock i.e. I will be left with nothing.

Asked on July 1, 2009 under Bankruptcy Law, Georgia

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I am a lawyer in CT and practice in this area of the law.  If you have the house taken in foreclosure, the chances are that the bank will not come after you for a deficiency.  Another option you may have is to do a short sale or a deed in lieu.  Under these options you can either make a deal to sell the property short of what is owed and the bank does not get a deficiency judgment against you, or you can give the house back to the bank and you can walk away without having to make up the difference.  I suggest that you see a lawyer asap to discuss whether these option are available.

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I am a lawyer in CT and practice in this area of the law.  If you have the house taken in foreclosure, the chances are that the bank will not come after you for a deficiency.  Another option you may have is to do a short sale or a deed in lieu.  Under these options you can either make a deal to sell the property short of what is owed and the bank does not get a deficiency judgment against you, or you can give the house back to the bank and you can walk away without having to make up the difference.  I suggest that you see a lawyer asap to discuss whether these option are available.


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